Low Rate Stance to be Maintained for Economic Recovery

Bank of Korea Governor Park Seung announced on the 8th, “the currency credit policy that controls interest rate may not be an obstacle to the recovery of business. ”At the 3rd Seoul International Financial Forum held at CCMM building in Yeouido, Seoul, Governor Park stressed, “ we raised the interest rate as every economic indicators point to recovery and there is no worries of inflation due to the expansion of currency in spite of the instability of U.S. economy and domestic stock market. Though we raised the interest rate, low rate stance will be maintained to pumping up the business. ”

He said, “some say that the increase of the rate is premature considering the depressed stock market. But we judged that a stitch, increase of the interest rate, in time saves nine. ”Governor Park added, “if Korea wants to be the financial hub of Asia, people should communicate freely in English, and living standard also should be upgraded. ”

Sang-Chul Kim sckim007@donga.com